Positive sentiment about gradual reopening of the economy drove stock markets higher for another week with financial and industrial sectors outperformed other sectors. For the week, S&P 500 index went up 3.0% to 3044, Dow Jones Industrial Average gained 3.75% , and the technology laden NASDAQ composite index increase 1.77%.
S&P 500 index closed solidly above its 28 week moving average this past week. The 28 week EMA currently at 2941, has turned from a intermediate trend resistance to a intermediate trend support. As discussed last week, the index appears to resume its long term uptrend trajectory. We will be looking for buying opportunity when the index pulled back to test its trend line support.
A trading signal in ETF model portfolio was issued this week to buy into bio tech index, IBB, as market sentiment has turned bullish and bio tech related sectors have seen strong momentum due to optimism about the development of Codv-19 vaccines.
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| Weekly chart of S&P 500 index |
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